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chapter 1
Services and development in the
Asia-Pacific: Introduction and Overview
peter W. daniels and James W. harrington
Introduction
The early twenty-first century has witnessed growing attention to the contribution of
service industries to the processes of urban, economic and social development in the
Asia-Pacific (Daniels et al., 2005; Hutton, 2001, 2004). To this literature, this volume
brings a particular focus on the role of public policies (governmental and civil) at a
variety of scales and their geographical outcomes at both national and urban levels.
The value of service industries to the Asia-Pacific economies is often underrated;
manufacturing still attracts most of the political and administrative energy when
it comes, for example, to designing tax, trade and support policies (apec, 2002).
however there are clear signs that things are changing. this relative inattention has
not caused the service sector to stagnate, though it has probably undermined the
sector’s ability to fulfil its potential to deliver the economic benefits that it might.
although industrialization was the dominant development paradigm amongst
many Asia-Pacific nations for much of the second half of the twentieth century,
during the 1990s and at the beginning of the twenty-first century services have
become more deeply embedded in the region’s economic growth and structural
change. rapid tertiarization is fundamentally restructuring national and regional
economies, especially in the region’s major cities (daniels et al., 2005; douglas,
2002; olds, 2001; hutton 2001). in Shanghai, for example, service-producing
industries have grown rapidly and, although still some way behind comparable cities
in europe or north america, accounted for some 51 per cent of its total ec
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